ZAGREB, Nov 11 (Hina) - Croatian Economy Minister Ljubo Jurcic on Tuesday handed over a document confirming MOL's take-over of INA's 25 percent plus one share, to the chief executive director of the Hungarian Oil Industry (MOL), Zsolt
Hernadi.
ZAGREB, Nov 11 (Hina) - Croatian Economy Minister Ljubo Jurcic on
Tuesday handed over a document confirming MOL's take-over of INA's
25 percent plus one share, to the chief executive director of the
Hungarian Oil Industry (MOL), Zsolt Hernadi. #L#
The first stage of the privatisation of the Croatian oil company was
wrapped up on Monday when MOL transferred 505 million US dollars
from a temporary account to the Croatian government's account. The
sum was paid for 2,500,001 shares of INA, Jurcic said at a news
conference in Zagreb.
The development of INA will be based on business plans, which have
been approved by its strategic partner. According to the plan,
until 2007, 1.5 billion US dollars are to be invested in INA. Of this
amount, one billion will be spent on research and production, $355
million on two Croatian oil refineries, with $237 million for the
refinery in Rijeka, and $107 million for one in Sisak.
Hernadi told the news conference that MOL was also intending to
invest a further $500 million in petrol stations, environment
protection and so on.
"We shall make efforts to help INA become a group at a European
level," he added.
INA's Chief Executive Officer, Tomislav Dragicevic, said no
substantial change of policy should be expected in INA and
conditions had been created for INA's repositioning in south-
eastern Europe.
The INA board of directors, consisting now of five Croatian and two
Hungarian members, will make decisions on running operations with a
simple majority (namely four votes necessary for a decision to be
passed), while six votes will be necessary for the adoption of
strategic decisions such as the annual budget, and decisions the
value of which exceeds 80 million kuna.
The chairman of the board of directors, who is Croatian, will be in
charge of human resources, while the other four Croatian members
will be in charge of research and development, production,
refineries, provision and sale, business processes and retail
sale.
The two MOL representatives will be responsible for financial
issues and corporate services (storing, facilities and information
technology).
Jurcic recalled that the agreements with MOL also included a
socially sensitive clause under which there would be no payment of
dividends in INA in the next three years. In four years' time, only
25 percent of the profit from that year could be divided.
This testifies to the fact that MOL is a serious strategic partner
of INA, the minister added.
The Croatian government began the first stage of INA's
privatisation in summer 2002, and on 17 July this year, the Ivica
Racan Cabinet signed an agreement with Hungary's MOL on the sale of
one fourth of the company's stock.
The second stage of INA's privatisation, which envisages sale of 15
percent of the company's shares at a public auction, can begin
within six months after the completion of the first stage.
Under the law on INA's privatisation, seven percent of the
company's shares will be given free of charge to Croatian war
veterans and seven percent will be sold to current and former INA
employees under more favourable conditions.
(hina) ms